Mahnoor Aamir Godil’s Post

Mars is acquiring Kellanova for $36 billion. This dwarfs the previous acquistion Mars did of Wrigley at $23 billion in 2008. The deal values Kellanova at $29 billion, offering shareholders a 33% premium, increasing its stock value to $80 up from $72 from last week. The acquisition creates a snacking powerhouse, adding Kellanova's brands to Mars' lineup, including Snickers and M&M's. The deal drives growth, expanding Mars' snacking platform to meet consumer needs. Kellanova's brands join Mars' 15 billion-dollar brands. This move solidifies Mars' position as a global snacking leader, following a series of strategic acquisitions. The deal unites two iconic businesses on par with other players in the segment like Mondelēz International & PepsiCo. #NausherwanKhan

Kellanova Surges on Acquisition Buzz1 Kellanova has seen a notable pre-market surge, with shares jumping over 21% to $76.86, following reports of a potential acquisition by Mars Inc., the privately owned food giant behind well-known brands like Snickers and M&M’s. Kellanova, the company behind Pringles, was spun off from WK Kellogg Co in October 2023 and currently holds a market value of approximately $27 billion, including debt. The stock had closed at $62.98 on Friday, marking a 1.5% increase, and has traded between $47.63 and $64.18 over the past year. As Mars Inc. explores this acquisition, the market is reacting positively, reflecting investor optimism about the potential deal. Read More Here: https://lnkd.in/eJfxzrrx RTTNews Branded Hospitality Ventures Hospitality Headline Newsletter Julie Bowerman Eric Firer Carrie Sander Chris Silcock Charisse Hughes #MergersAndAcquisitions #Finance #StockMarket #BusinessNews

Corporate takeover or simple merger? Does it even matter? When you hear the beast that is Mars is buying WK Kellogg Co's spinoff Kellanova for a massive $36bn (USD) you know there is something at play. It's said that Kellanova will become part of Mars Snacking, bringing brands like Pringles, Pop tart, Rice Krispies, KIND, NutriGrain, Eggos, RXBAR, Zesta Tea, Kellogg Company, and Wrigley to name a few. 🤯 These two companies have a crazy global reach, but combined, the rebalancing of their market penetration in the Asian and African regions specifically will be pretty huge. I'm not the biggest fan of the product portfolio of these companies, but can appreciate the strategic foresight in global diversification - for better or worse! Mars has so many nostalgic and staple brands saturated within popular culture around the world. I'd love to see some of the smaller, more sustainable, and nutritious brand acquisitions become front runners in the portfolio. The world urgently needs better access to better snacks so hopefully the company can help change the environment they frankly have helped to create. Personally I don't really get how this can get approved by competition regulators, but it's not my area so let's wait and see! 🙃

🚨 Immensely valuable brand portfolios within #Merger & #Acquisition🚨 The acquisition of Kellanova by Mars stood out as the largest transaction announced in Q3 2024, with a whopping deal value of US$36B (S&P Global). This reinforces the resilience and promise of #consumergoods #investments, even in a tech-driven economy. 💼📈 Kellanova, a global leader in snacking, cereals, noodles, plant-based foods, and frozen breakfast, boasts an impressive #brand portfolio including Pringles®, Cheez-It®, Pop-Tarts®, Nutri-Grain®, Eggo®, MorningStar Farms®, and more. This acquisition is set to join the ranks of the Top 10 Most Expensive Brand Portfolios ever acquired! 💡 Speaking of Most Expensive Brand Portfolios, here are a few notable examples listed in MARKABLES #database: 1️⃣ British American Tobacco's acquisition of Reynolds American (2017): US$93.6B 4️⃣ Procter & Gamble's purchase of Gillette (2005): US$25.6B 14️⃣ Stellantis’ purchase of Fiat Chrysler (2021): US$11.8B Curious to see the full list? Check out the link in the first comment! #MARKABLES’ selection of #marketcomps for the #valuation of brands and #trademarks is second to none in the sector. 🔍👏 #IntangibleAssets #IPValuation #Royalties #Transferpricing

🚀 Big Moves in the Snacks World This week, whispers in the industry indicate that Mars, the confectionery giant, might be making a $30bn move for Kellanova, the former snacking arm of Kellogg's. This rumoured acquisition has lit up discussions among analysts and could mark the largest food and drink acquisition in nearly a decade. 🌟 For Mars, this potential acquisition is not just about size but strategy. By absorbing Kellanova, Mars could broaden its portfolio into savoury snacks and breakfast offerings, tapping into the snack brands like Special K and Pop Tarts - a significant diversification from its stronghold in confectionery. What's more intriguing is that this move could signal the beginning of a consolidation wave in the FMCG (fast-moving consumer goods) sector, reminiscent of the Kraft-Heinz era in 2015. Interestingly, despite the hefty price tag and the complexities of the potential deal, Mars remains in a strong position to push forward, not needing to appease shareholders, thanks to its family-owned status. This freedom, along with Kellanova's attractive valuation and Mars' recent successful acquisitions, certainly adds weight to the possibility. If this merger takes off, analysts believe it could ignite a series of mergers and acquisitions as companies scramble to bolster their portfolios in this evolving market landscape. What are your thoughts on this potential acquisition? Is it a strategic masterstroke, or could it be a risky overreach? #MergersAndAcquisitions #FoodIndustry #MarsKellanova

Mars to acquire Kellanova in $35.9 billion deal. Read more on https://buff.ly/3WMeqWN #Mars #Kellanova #MergersAndAcquisitions #BusinessDeal #CorporateAcquisition #FoodIndustry #BusinessGrowth #MarketExpansion #IndustryLeadership #StrategicAcquisition #GlobalBusiness #IndustryNews

The year’s largest merger is here: Mars and Kellanova. If you have never heard of Kellanova, you’ve certainly heard of the company it was recently formed out of – the Kellogg Company. Kellanova was launched in 2023 (a mere 317 days from this announcement) as a carveout from Kellogg with the aim to separate the faster growing snack foods from the slower growth cereal business.  Steve and I sat down to share some perspectives on the deal this morning. I hope you'll check them out. We covered: 1) The category opportunities 2) International runway 3) Alignment with consumer trends 4) Hedging supply side challenges 5) Synergies at scale Check it out below. https://lnkd.in/gsagXvhq

Mars's Acquisition of Kellanova for $36 billion - Mars has reached an agreement to acquire Kellanova for nearly $36 billion, marking one of the most significant transactions in the food industry this year. The deal, which values Kellanova at $83.50 per share, represents a 33% premium over the company's closing price on August 2, the last trading day before news of the discussions emerged. This acquisition will be financed through a combination of cash reserves and newly issued debt, underscoring Mars' financial strength and commitment to the transaction. - For Mars, this acquisition represents an expansion beyond its traditional chocolate and confectionery portfolio, a strategic necessity as cocoa prices have surged to record highs in 2023. By incorporating Kellanova’s diverse range of snack products, including the iconic Pringles and Eggo waffles, Mars positions itself to mitigate risks associated with raw material price volatility and diversify its revenue streams. - Kellanova’s strong performance post-spinoff from WK Kellogg Co. highlights its robust market positioning and operational excellence, which likely made it an attractive target for Mars. The company's ability to consistently outperform its peers amidst a challenging macroeconomic environment, characterized by declining volumes and price-sensitive consumers, signals strong management and a resilient business model. - The deal, supported by significant shareholders including the W.K. Kellogg Foundation and the Gund Family, is anticipated to close in the first half of 2025. This timeline allows for the necessary regulatory reviews, although the limited product overlap between Mars and Kellanova suggests minimal antitrust hurdles. Analysts anticipate that the integration will enable Mars to accelerate its growth in international markets, with Kellanova’s global distribution network and product portfolio playing a crucial role. - Financially, the transaction is supported by a $29 billion bridge loan facility, highlighting the scale and complexity of the deal. Mars’ ability to secure such financing speaks to the confidence of lenders in the long-term strategic benefits of the acquisition, particularly in terms of revenue diversification and market expansion. #marsinc #kellanova #mergersandacquisitions #foodindustry #acquisition #privatedebt #financialstrategy #marketexpansion #chocolateindustry #snackingmarket

Merger News: Mars, Inc. will acquire Kellogg’s snack spinoff Kellanova for USD 36 billion, or over a 16X EBIDTA multiple. Below is an infographic depicting the brands under each merging entity. Important question, if you could only ever eat snacks from Mars or Kellanova for the rest of your life, which side are you picking?